Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Note 4 . Discontinued Operations During the fourth quarter of 2015, the Company determined to exit the business conducted by Hetnets and curtailed activities in its smaller markets. The remaining network, located in New York City (or “NYC”), was the largest and had a lease access contract with a major cable company. As a result, the Company explored opportunities during the fourth quarter of 2015 and continuing into the first quarter of 2016 to sell the New York City network. On March 9, 2016, the Company completed a sale and transfer of certain assets pursuant to an Asset Purchase Agreement (the "Agreement") with a large cable company (the "Buyer"). Under the terms of the Agreement, the Buyer assumed certain rooftop leases and acquired ownership of and the right to operate the Wi-Fi access point and related equipment associated with such leases. The Company retained ownership of all backhaul and related equipment, and the parties entered into an agreement under which the Company provides backhaul services to the Buyer. The agreement is for a three-year period with two one-year renewals and is cancellable by the Buyer on sixty days notice. In connection with the Agreement, the Company transferred to the Buyer a net book value of network assets aggregating $2,660,041 in exchange for the backhaul agreement valued at $3,837,783. The backhaul agreement has been recorded as an intangible asset in the accompanying condensed consolidated balance sheet. As a result, during the first quarter of 2016, the Company recognized a gain of $1,177,742 in its discontinued operations. The Company has determined that it will not be able to sell the remaining network locations in New York City. As a result, the Company recognized charges totaling $1,585,319 in the first quarter of 2016 which included $453,403 representing the estimated cost to settle lease obligations, $528,364 to write off network assets which could not be redeployed into the fixed wireless network, $110,500 related to security deposits which are not expected to be recovered, and $493,052 related to the accelerated expensing of deferred acquisition costs. These costs were partially offset by a $1,244,284 reduction in the accrual for terminated lease obligations that was recorded in the fourth quarter of 2015. This reduction reflects the outcome of settlements negotiated in the first quarter of 2016 with certain landlords. The operating results and cash flows for Hetnets have been reclassified and presented as discontinued operations in these condensed consolidated financial statements for all periods presented. Discontinued Operations A more detailed presentation of loss from discontinued operations is set forth below. There has been no allocation of consolidated interest expense to discontinued operations. Three Months Ended June 30, Six Months Ended June 30, 201 6 201 5 201 6 201 5 Revenues $ - $ 826,226 $ 553,302 $ 1,613,854 Operating expenses: Infrastructure and access - 3,662,021 2,523,222 7,359,177 Depreciation - 1,015,859 638,681 2,047,369 Network operations 9,364 195,640 192,947 391,034 Customer support services - 106,134 69,804 188,446 Sales and marketing - 43,299 246 86,911 General and administrative 58,212 - 105,545 - Total operating expenses 67,576 5,022,953 3,530,445 10,072,937 Net operating loss (67,576 ) (4,196,727 ) (2,977,143 ) (8,459,083 ) Gain on sale of assets - - 1,177,742 - Net Loss $ (67,576 ) $ (4,196,727 ) $ (1,799,401 ) $ (8,459,083 ) The components of the balance sheet accounts presented as discontinued operations were as follows: June 30, 2016 December 31, 2015 Assets: Accounts receivable, net $ 6,072 $ 715,993 Prepaid expenses and other current assets 231,978 278,891 Deferred acquisitions costs - 253,685 Total Current Assets $ 238,050 $ 1,248,569 Liabilities: Accounts payable $ 628,522 $ 556,800 Accrued expenses - 66,101 Accrued expenses - leases 2,378,658 3,284,467 Total Current Liabilities $ 3,007,180 $ 3,907,368 |